Tuesday, July 29, 2008

Painting Business Insurance Cost

Running a painting business is a lot of work and keeping costs to a minimum is essential if you want to stay in competition causing a lot of Painting Business owners not to carry Painting Business Insurance. This is a huge mistake that can be costly and put your business out of business for good and may even cause you to end up in jail. Every Painting business should carry Painting Business Insurance.

There are two main insurance policies that should be carried each has different premiums depending upon the state and area you conduct business. Checking with an Insurance Agent or Broker for policy premiums is just a matter of going in and talking to them. Most times a policy can be put in place the very same day.

General Liability Insurance is the number one insurance policy your painting business should carry. The premiums in my area for a (1,000,000) one million dollar policy range from (500) five hundred dollars to (1,200) twelve hundred dollars. Sometimes they will allow you to place only (20) twenty percent down and some will require the entire premium be paid up front. The premium is a minumun cost and one your painting business should definitely carry for it will cover any accidental damages and even some injuries.

Workmans Compensation Insurance is the next very important policy you should have in place. Every state has different rules on Workmans Compensation so you will need to talk with your agent about it. In my area the base premium will cost (1,500) fifteen hundred dollars. How it works is based upon how much your payroll is and they will audit you at the end of the term. Some states allow you to carry Workmans Compensation for your self as well as any employees. Workmans Compensation is extremely important and should you have employees working who are not covered you can go to prison for it is a felony in addition to being sued by an injured worker. If you have workers who work for other companies besides yours you can consider them to be sub contractors who would be required to carry their own Workmans Comp policy and show proof of it.

Having Painting Business Insurance is very important and there should always be a policy in place for your own protection.

For more articles on owning a Painting Business:

Creating a Painting Business Plan

Start a Painting Business No Money

How to Bid Painting Jobs

Top Painting Franchises

Painting Franchise Opportunities

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